Campaign Debts: Zschau Pays His Own; Herschensohn Is Trying; Davis Gives Up

For Ed Zschau, the already-steep price of defeat in last year’s U.S. Senate campaign in California has escalated.

Zschau, who gave up his congressional seat to challenge Democratic Sen. Alan Cranston, says he has personally assumed most of the remaining debt from his $11.7-million campaign. His loans to the campaign amount to about $750,000, Zschau said, while the total outstanding exceeds $850,000.

“My hope is that I’ll be . . . paid back, at least partially,” Zschau said in an interview. “My expectation is that it’s going to be tough sledding.”

Zschau said he has raised about $300,000 since the November election through mail solicitation and post-mortem fund-raisers but also spent that much to pay several staffers, run a computer, send mail and rent headquarters.

The small staff that was retained to solicit funds was disbanded last month because “it was costing us more to continue to try to raise money than we were raising,” he said.

“The people who want to help you most, your strongest supporters, cannot help you because they have already contributed the maximum,” added Zschau, who spent most of his money on television commercials. “It’s hard to go to new people and convince them to contribute to a campaign whose outcome has already been decided--unfavorably.”

Under federal law, individuals may contribute a total of $2,000 to a congressional candidate--$1,000 in the primary and another $1,000 in the general election. But a candidate may give an unlimited amount to his own campaign.

Zschau, a self-made millionaire who founded a Silicon Valley electronics company, in January joined Brentwood Associates, a Menlo Park venture capital firm, as a partner.

The former representative from Los Altos is not the only candidate who ended the 1986 Senate campaign with large unpaid bills. The spirited GOP primary and November showdown cost more than $30 million, making it California’s most expensive election ever.

Cranston, who reported a campaign debt of $589,085 after the election, has reduced his unpaid bills to $100,000, campaign manager Darry Sragow said. Cranston spent $11 million to win a fourth term.

Cranston also has a $328,000 debt remaining from his unsuccessful 1984 campaign for the Democratic presidential nomination, campaign treasurer William M. Landau said.

Advantage in Winning

Winners generally have an easier time than losers raising money from special interests and others seeking to retain access or good will. “It’s awfully difficult to sell yesterday’s newspapers,” said Los Angeles-based political consultant Allan Hoffenblum.

At least one other Republican who ran in the 1986 U.S. Senate race still is struggling to pay off his debt while another who remains in the red has raised the white flag.

Political commentator Bruce Herschensohn, runner-up to Zschau in the GOP primary, is speaking to Republican groups, holding fund-raisers and sending letters to attract money to pay campaign vendors.

Herschensohn said Friday his debt is now $60,000, which he expects to pay off by year’s end. He had reported a debt of $136,976 in June, 1986, from his $1.35-million campaign.

State Sen. Ed Davis, meanwhile, told the Federal Elections Commission in March that he cannot pay off his remaining $75,556 debt from the U.S. Senate race. Davis, a Valencia Republican who has announced he will seek reelection in 1988, has requested FEC approval to ask his creditors to forgive most of the money he owes them from his $689,583 primary campaign.

“It is impossible for the Davis campaign to raise sufficient personal contributions to retire the entire $75,556 debt,” campaign treasurer Elsie O. Olson wrote. Davis’ proposal calls for him to raise $13,592 in the next year. The FEC has not considered the request, spokeswoman Karen Finucan said.